Cotton down on ICAC crop forecast.

Cotton candy futures fell 0.58 per cent yesterday to 61,860, pressured by forecasts of higher production and consumption from the International Cotton Advisory Committee (ICAC) for the next season.

The ICAC predicts a 3 per cent rise in cotton acreage and a 2.5 per cent increase in output to 25.22 million tonnes. Consumption is also seen rising 2.9 per cent to 25.37 million tonnes, with global trade up nearly 4 per cent to 9.94 million tonnes.

Meanwhile, India's cotton production estimates for the current season were revised upward by the Cotton Association of India (CAI) and the Cotton Corporation of India (CCI). ICE cotton futures also declined on expectations of ample supply and tepid mill demand.

Technically, the market displayed fresh selling, with open interest rising 0.91 per cent despite the price drop. Support for cotton candy is seen at 61,660, with potential for a test of 61,460. Resistance is anticipated at 62,080, a break above which could see prices target 62,300.